Although the fall in cryptocurrency values may tempt you to “buy the dip” on some tokens if you have some spare cash, because it lacks any fundamental principles, valuing cryptocurrencies is much more difficult. Because cryptocurrencies do not generate any underlying free cash flow, they are inherently uninvestable for long-term value investors. You’re undoubtedly better off keeping your portfolio invested in equities if you care about such matters.

These are two internet businesses with greater potential than any bitcoin.

1. Spotify

Spotify is the first on our list (SPOT -1.71%), a global leader in music streaming. The firm started as a music streaming service over 10 years ago, but it has since expanded to include additional audio codecs such as live audio, podcast and (yet-to-arrive) audiobooks.

Spotify earns revenue by selling subscriptions that provide ad-free and downloadable music listening, as well as advertising for its podcast catalog and free listeners. It had 182 million premium customers and 252 million ad-supported users throughout the world at the end of Q1. This resulted in $11.8 billion in income and $3.15 billion in gross profit over the last year. Spotify’s gross margins are currently around 25%, but the company is investing heavily in expansion with its podcast efforts, which explains why they’re so low right now. The firm expects to improve gross margins to 30 percent or more over the next several years, allowing it to begin generating significant cash flow for investors.

2. Match Group

Match Group is the second-largest firm on our ranking (MTCH -0.67%). Match is the most well-known and popular online dating network, with Tinder, Match.com, Hinge, and other top brands. With its various apps now being the most common method for people to connect with potential lovers online, the business has been benefiting from a long-term tailwind in online dating.

Dating apps are incredibly asset-light, allowing the firm to achieve huge profit margins while also investing in development. Match’s revenue expanded at a compound annual growth rate of 22% from 2017 to 2021, with operating margins above 35% each year during that period. This indicates that when this decade is more developed, the business will be able to enhance its margins even further